2019.10.1106:01:00UTC+00Oil Prices Rally On Supply Concerns

Oil prices jumped nearly 2 percent on Friday after two rockets struck an Iranian tanker traveling through the Red Sea off the coast of Saudi Arabia today, raising the prospect of supply disruptions from a crucial producing region.

Benchmark Brent crude jumped 1.7 percent to $60.05 a barrel while U.S. West Texas Intermediate (WTI) crude futures were up 1.75 percent at $54.48 a barrel.

Iranian news agencies said that two separate explosions hit an Iranian oil tanker, which set the ship on fire.

The ship suffered heavy damage and was leaking oil into the water, unnamed sources told Iran's Students News Agency ISNA.

The vessel is owned by Iran's state-owned National Iranian Oil Co. (NIOC), who identified the tanker as the Sabiti. No casualties were reported in the incident.

The incident follows the Sept. 14 attacks on two Saudi Arabian oil processing plants that knocked out more than half of the kingdom's crude oil output temporarily.

Oil prices also remained supported after OPEC said that it has all options in place to balance oil markets and that it would take a decision in December regarding supply.

OPEC's Secretary General Mohammad Barkindo said the meeting between OPEC and allies, including Russia would take decisions that will set the path of heightened and sustained stability for 2020.